UK drinks giant Diageo has disclosed its Latin America sales for this financial year will be reduced by 2% as the result of an accounting error relating to sales of its luxury tequila brand Don Julio last year, which meant some sales were recorded twice
Diageo's Mexico unit sold some bottles of Don Julio to the company's US unit that it recorded as an external sale. The US unit then sold on those bottles and recorded that as a separate sale, according to US press reports of comments made to US analysts by Alberto Gavazzi, president, Diageo Latin America and Caribbean.
The company’s net sales in the Latin America and Caribbean region totalled £1.03bn last year, and the accounting mistake is said to have an impact of about £15.1m.
The 2015 error occurred while Diageo was acquiring the remaining 50% of Don Julio, which it had purchased from the Mexican company Jose Cuervo.
